Salvarx Share Discussion Threads

[fig1] 15/8/2018 08:36

.....of course,it could be designed to smoke out a counter-bid from another interested (but,as yet,undisclosed)party.Just speculating.....

[fig1] 15/8/2018 08:31

All good points Dex. Seems an overly (deliberately)complex way to conduct things.I'm a long term holder but with no facility to trade Canadian shares(of any size).Feels a bit like small guys like me are being maneuvered out of the picture just before big news breaks.I hope I'm wrong. Fig.

[dexdringle] 15/8/2018 08:22

Okay, I'll do it then:

1. Salvarx Group (the company in which we own shares) is selling its only asset, a 94% stake in Salvarex Limited (which in turn owns all of the sub assets), to Portage Biotech.

2. Portage Biotech is paying around £60 million Salvarx Limited by issuing new 757 million new shares thought to be worth around US 10 cents (8p) each.

3. On Monday, Salvarx Group had a market cap of around £17 million - so the £60 million bid value represents a 3.5x multiple (hence the 250% PREMIUM to the current price).

4. Immediately after the deal Salarx Group will own 757 million Portage shares (allegedly worth £60 million) and a bit of cash. Each Salvarx Group share would therefore be worth around £1.76.

5. Salvarx Group will then distribute 656 million (85%) of the portage shares to Salvarx Group shareholders at a rate of around 18 for every 1 Salvarx Group share they own.

6. Salvarx Group will then be a shell company which has a bit of cash and, inexplicably, a retained holding of 60 million Portage shares worth around £5 million. So, the old Salvarx Group in which we will continue to own the same number of shares should have a value of around 15p a share.

Questions:

a) If the deal makes each Salvarx share worth £1.91 (points 4 and 6 above), why are they now trading at 65p?

b) If the Salvarx Limited assets are so valuable why is Salvarx Group selling?

c) Why are Portage not simply launching a takeover for the whole Salvarx Group at, say, 80p a share rather than buying a sub asset for twice that amount?

d) Why does Salvarx Group not simply hold on to the 757 million Portage shares like it did the Salvarx Limited shares?

e) What are the chances of Portage shareholders voting for a massive dilution so they can, on the face of it, massively overpay for a ‘pie in the sky’ British asset?

f) Why on earth would I want to hold shares in a penny share biotech business listed in Canada?

Something is not right here……….

[the stigologist] 15/8/2018 02:19

Daily Mail Market Report

"But shareholders in Salva Rx, a biotechnology firm which attempts to create treatments that boost the body’s natural defences to fight cancer, were in for a more positive surprise.

Shares shot up 43.5 per cent, or 19.4p, to 64p as the company announced it was selling its subsidiary to Canada-listed Portage Biotech."

[the stigologist] 15/8/2018 01:28

10 products list that on US markets and you are looking at a valuation in the 'hundreds of millions' if not $1bn+

As I said before. Will be holding this for the medium term. These guys are serious players, who've delivered for shareholders before and bigtime.

It's actually a Double Whammy. We get the in-specie distribution and SALV becomes a cash shell which could do it's own RTO.

[the stigologist] 15/8/2018 01:27

This gets better and better !

Portage are not hanging around. It is a reverse takeover, they will also have a consolidation (allowing US Investors to buy). I expect this will become a very big company. Note their comment about buying before an imminent inflection point for valuation uplift.


"Declan Doogan, C.E.O. of Portage, remarked, "Since we completed the distribution of Biohaven shares, we have been looking for other exciting undervalued opportunities with near term inflection points. The acquisition of SalvaRx Limited represents the next evolution of Portage as we acquire interest in 10 products in the exciting area of immuno-oncology led by a top class team. Portage is now poised to advance several products to clinical proof of concept and hopefully take advantage of strong capital markets and increased levels of pharma mergers and acquisitions to bring yet more returns to our shareholders.""

[bigego] 14/8/2018 23:32

dex if you need to know how to use a simple instrument such like the humble calculator you should not be investing in shares.

Suggest you go and buy some Premium Bonds and leave the junior markets to those who can.

Twelve hours in and he cannot do a few simple calculations, no hope I am afraid.

[dexdringle] 14/8/2018 19:16

It's okay. bigego will be along shortly to explain to us all how simple the whole thing is......

[typo56] 14/8/2018 17:52

Not a lot of action on the CES either - last traded Aug 9. You really want 18 of these shares per SALV?



Last news release June 7 2018.

[bandflex] 14/8/2018 17:22

The news has not been released on the CES either as far as I can tell, and the trading halt is still in place, so no way to gain reaction of Portage shareholders.

Its all very odd.

250% - If something is too good to be true, then it probably is.

[typo56] 14/8/2018 17:01

I find it strange that I can't find any mention of today's announcement here, given it would involve the issue of 758m shares. This is the right site?

[typo56] 14/8/2018 16:53

The RNS talks of the share offer being valued at US$1.80, not C$1.80.

"Based on the Portage share price of US$0.10 (being the price of the last trade on the OTC on 10 August 2018)".

[wiseacre] 14/8/2018 16:25

The share offer, valued at C$1.80 a share, translates to 108p. Portage Biotech last traded on 9 August and is valued at just C$28 million. However it enjoyed a spectacular success at the end of last year distributing shares in Biohaven, one of the most successful biotech 1POs in New York. SalvaRx CEO Ian Walters loathed AIM. He is on the board of Portage. Clearly today's news is being treated with huge suspicion given the price reaction but biotech is much better understood on the other side of the Atlantic and should be better valued accordingly.

[kristini2] 14/8/2018 15:03

some smart money, most just lucky ......

sell on a spike on AIM as it nearly always dissipates......

[dexdringle] 14/8/2018 14:37

looks like the smart money sold at 80/90p....??

[kristini2] 14/8/2018 14:21

salvx are not the most liquid stock -portage is possibly more liquid

often days would pass with no trade in salvx stock

[typo56] 14/8/2018 13:49

If Portage Biotech were liquid and in demand, surely a better solution would be for them to place the shares and pay SALV shareholders in cash?

If they are not so liquid and in demand, who says you'll be able to sell them for anything like US$0.10 when you receive them?

[shakyhands] 14/8/2018 12:40

Well,Yahoo Finance has Portage on a market cap of around $28 million.So an extra $67.5 million in shares looks rather large.

[dexdringle] 14/8/2018 12:31

bigego said "Some real bell ends not understanding what is quite a simple transaction here today".

Fab. You clearly do understand it then. If you could please explain it in layman's terms that would be great.

If you could chuck in something, with some supporting maths, about why 80p is now the price per share and how that is derived from the maths of the deal that would be extra useful.

Thanks bigego

[kristini2] 14/8/2018 12:11

Market must be expecting a fairly severe downside correction in portage share price at the open based on salvx trading here this morning

[bandflex] 14/8/2018 11:40

Just seen a typically misleading post on LSE suggesting you get more shares if Portage falls.

To be clear you do not get more shares if the the Portage share price falls and you do not get fewer shares if the Portage share price goes up.

The deal is for 757,943,784 shares in Portage at the price of 8.9c, so a discount to yesterdays closing price. The number of shares remain the same regardless of whether Portage shares go up or down, its the value of the deal that changes depending on the Portage share price because it is shares in Portage you will receive not cash.

I should point out that the share price is not fixed at 8.9c before some twitter clown suggests it is.

[bigego] 14/8/2018 11:32

Some real bell ends not understanding what is quite a simple transaction here today.

[bandflex] 14/8/2018 11:25

And where do you get your magic £50m from ? thin air!

[kristini2] 14/8/2018 11:20

so salvxr gives up all interest in intensity, iox etc and is then a cash shell, sitting on £50m and valued today at £28m?

Could i remain a salvx investor as i guess mellon will start an investment strategy with the cash received?

i would have to sell the shares and then reinvest......?